Inspired by the Economist. you are thinking about opening a McDonald's franchise in another country. The country I choose is Sweden In the analysis, construct the following items: 

1) an Inflation index based on the price of the Big Mac in your country and in the US. 

2) an Index on Purchase Price Index (PPI) based on the price of a Big Mac in your country relative to the US. 

3) the difference between PPI and the actual exchange rate. 

4) the percent difference between PPI and the actual exchange rate, which indicates how over or under-valued your currency is, as suggested by Purchase Parity. 

5) highlight the year of major changes in the Percent Difference.

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To construct the items requested for opening a McDonalds franchise in Sweden compared to the US 1 In... View the full answer